Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Philip Morris International Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Goodwill	16,600)	16,779)	19,655)	6,680)	5,964)
Non-amortizable intangible assets	4,446)	4,543)	3,346)	1,312)	1,289)
Trademarks	2,134)	2,267)	2,050)	1,201)	1,233)
Reacquired commercialization rights for IQOS in the U.S.	2,777)	—)	—)	—)	—)
Developed technology, including patents	320)	774)	975)	859)	93)
Customer relationships and other	3,712)	3,843)	1,390)	238)	126)
Amortizable intangible assets, gross carrying amount	8,943)	6,884)	4,415)	2,298)	1,452)
Accumulated amortization	(2,062)	(1,563)	(1,029)	(792)	(722)
Amortizable intangible assets, net	6,881)	5,321)	3,386)	1,506)	730)
Other intangible assets, net	11,327)	9,864)	6,732)	2,818)	2,019)
Goodwill and other intangible assets, net	27,927)	26,643)	26,387)	9,498)	7,983)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Philip Morris International Inc. goodwill decreased from 2022 to 2023 and from 2023 to 2024.
Other intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Philip Morris International Inc. other intangible assets, net increased from 2022 to 2023 and from 2023 to 2024.
Goodwill and other intangible assets, net	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Philip Morris International Inc. goodwill and other intangible assets, net increased from 2022 to 2023 and from 2023 to 2024.

Philip Morris International Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	61,784)	65,304)	61,681)	41,290)	44,815)
Less: Goodwill	16,600)	16,779)	19,655)	6,680)	5,964)
Total assets (adjusted)	45,184)	48,525)	42,026)	34,610)	38,851)
Adjustment to Total PMI Stockholders’ Deficit
Total PMI stockholders’ deficit (as reported)	(11,750)	(11,225)	(8,957)	(10,106)	(12,567)
Less: Goodwill	16,600)	16,779)	19,655)	6,680)	5,964)
Total PMI stockholders’ deficit (adjusted)	(28,350)	(28,004)	(28,612)	(16,786)	(18,531)
Adjustment to Net Earnings Attributable To PMI
Net earnings attributable to PMI (as reported)	7,057)	7,813)	9,048)	9,109)	8,056)
Add: Impairment of goodwill	—)	665)	—)	—)	—)
Net earnings attributable to PMI (adjusted)	7,057)	8,478)	9,048)	9,109)	8,056)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Philip Morris International Inc., Financial Data: Reported vs. Adjusted

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Philip Morris International Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	18.63%	22.21%	28.49%	29.00%	28.08%
Adjusted net profit margin	18.63%	24.10%	28.49%	29.00%	28.08%
Total Asset Turnover
Reported total asset turnover	0.61	0.54	0.51	0.76	0.64
Adjusted total asset turnover	0.84	0.72	0.76	0.91	0.74
Financial Leverage
Reported financial leverage	—	—	—	—	—
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	—	—	—	—	—
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	11.42%	11.96%	14.67%	22.06%	17.98%
Adjusted ROA	15.62%	17.47%	21.53%	26.32%	20.74%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Philip Morris International Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Philip Morris International Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Philip Morris International Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Philip Morris International Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI	7,057)	7,813)	9,048)	9,109)	8,056)
Net revenues	37,878)	35,174)	31,762)	31,405)	28,694)
Profitability Ratio
Net profit margin¹	18.63%	22.21%	28.49%	29.00%	28.08%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to PMI	7,057)	8,478)	9,048)	9,109)	8,056)
Net revenues	37,878)	35,174)	31,762)	31,405)	28,694)
Profitability Ratio
Adjusted net profit margin²	18.63%	24.10%	28.49%	29.00%	28.08%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Net profit margin = 100 × Net earnings attributable to PMI ÷ Net revenues
= 100 × 7,057 ÷ 37,878 = 18.63%

² Adjusted net profit margin = 100 × Adjusted net earnings attributable to PMI ÷ Net revenues
= 100 × 7,057 ÷ 37,878 = 18.63%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Philip Morris International Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net revenues	37,878)	35,174)	31,762)	31,405)	28,694)
Total assets	61,784)	65,304)	61,681)	41,290)	44,815)
Activity Ratio
Total asset turnover¹	0.61	0.54	0.51	0.76	0.64
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenues	37,878)	35,174)	31,762)	31,405)	28,694)
Adjusted total assets	45,184)	48,525)	42,026)	34,610)	38,851)
Activity Ratio
Adjusted total asset turnover²	0.84	0.72	0.76	0.91	0.74

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Net revenues ÷ Total assets
= 37,878 ÷ 61,784 = 0.61

² Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 37,878 ÷ 45,184 = 0.84

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Philip Morris International Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	61,784)	65,304)	61,681)	41,290)	44,815)
Total PMI stockholders’ deficit	(11,750)	(11,225)	(8,957)	(10,106)	(12,567)
Solvency Ratio
Financial leverage¹	—	—	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	45,184)	48,525)	42,026)	34,610)	38,851)
Adjusted total PMI stockholders’ deficit	(28,350)	(28,004)	(28,612)	(16,786)	(18,531)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Total PMI stockholders’ deficit
= 61,784 ÷ -11,750 = —

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total PMI stockholders’ deficit
= 45,184 ÷ -28,350 = —

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI	7,057)	7,813)	9,048)	9,109)	8,056)
Total PMI stockholders’ deficit	(11,750)	(11,225)	(8,957)	(10,106)	(12,567)
Profitability Ratio
ROE¹	—	—	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to PMI	7,057)	8,478)	9,048)	9,109)	8,056)
Adjusted total PMI stockholders’ deficit	(28,350)	(28,004)	(28,612)	(16,786)	(18,531)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Net earnings attributable to PMI ÷ Total PMI stockholders’ deficit
= 100 × 7,057 ÷ -11,750 = —

² Adjusted ROE = 100 × Adjusted net earnings attributable to PMI ÷ Adjusted total PMI stockholders’ deficit
= 100 × 7,057 ÷ -28,350 = —

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI	7,057)	7,813)	9,048)	9,109)	8,056)
Total assets	61,784)	65,304)	61,681)	41,290)	44,815)
Profitability Ratio
ROA¹	11.42%	11.96%	14.67%	22.06%	17.98%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to PMI	7,057)	8,478)	9,048)	9,109)	8,056)
Adjusted total assets	45,184)	48,525)	42,026)	34,610)	38,851)
Profitability Ratio
Adjusted ROA²	15.62%	17.47%	21.53%	26.32%	20.74%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Net earnings attributable to PMI ÷ Total assets
= 100 × 7,057 ÷ 61,784 = 11.42%

² Adjusted ROA = 100 × Adjusted net earnings attributable to PMI ÷ Adjusted total assets
= 100 × 7,057 ÷ 45,184 = 15.62%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Philip Morris International Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Philip Morris International Inc. (NYSE:PM)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Philip Morris International Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Philip Morris International Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)